BIDV Lists US$128Mln Bonds on Stock Market

The Bank for Investment and Development of Vietnam (BIDV) listed more VND2,047 billion (US$128 million) worth of bonds on the Ho Chi Minh City Trading Center Wednesday.

 

These are four types of VND100,000-face value bonds issued in the first and second phase in 2006. They include the BID10106 with three-year terms and an annual interest of 9.36 per cent, the BID10206 with five-year with 9.5 per cent interest, the BID10306 with 10-year at 10.1 per cent interest and the BID10406 with 20-year at 10.45 per cent interest.

 

BIDV was the first bank to list its bonds on the exchange in November 2000. These initial bonds were worth a total of VND160 billion. In last July, VND2.2 trillion of BIDV bonds was listed on the board.

 

In April, Moody's Investors Service rated the bank Ba1 and Ba2 as an issue of Vietnam dong and foreign currency.

 

Under the Moody's ratings, BIDV reduced its bad debt from 31 per cent in 2005 to 9.6 per cent by 2006's end.

 

BIDV general director Tran Bac Ha said: "We will bring the rate to less than 5 per cent in accordance with international standards before undergoing equitization."

 

BIDV plans to make the initial public offering in the fourth quarter of this year. Last month, five institutions, Goldmand Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS were short listed to participate in the equitization consultation bid.

 

By the end of March, BIDV's assets reached almost VND185 trillion ($11.5 billion), up 48 per cent from March 2006. In the first three months of the year, the bank mobilized VND143 trillion, up 59 per cent over the same period in 2006. (Banking Times, VNA)